The harder you fall, the higher you bounce ....

First Solar is a leader in its industry and they are industrial rather than one-on-one model. They make energy for peak line demand rather than base line demand. The company's solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity. Since this is the only firm amongst its competitors which uses thin-film technology they have the lowest cost per watt electricity production in the business. They produce electricity at $1.19/watt which is almost 50% less than what other solar companies produce at. There is a risk factor, the price of silicon. One of the major costs incurred in solar producing electricity is silicon because it is used in making the wafers that convert and store electricity. Rising silicon prices would increase the cost of production and hence it will affect the company negatively. However, First Solar avoids the silicon wafer shortage in solar power. They have already signed contacts for over $6 Billion out to 2012 and that is now a baseline for the next five years. They produce for less and increase capacity. The company has advantage over others because thin film PV cells have an advantage in producing electricity under lower light conditions. This means that when it's cloudy or early and late in the day, First Solar's thin film PV cells are still cranking away, producing electricity while their silicon counterparts sit idle. The ability to produce electricity under a wider range of light conditions makes these cells attractive to utility companies who require stable large-scale, utility-sized renewable energy production. energy production. The company has performed exceptionally well in past we expect the same for the future. The company currently has 7 production lines. In April 2007, First Solar announced the construction of additional manufacturing plants that are scheduled to come on line at the end of 2008. By the end of 2009 when all comes on line, First Solar will have 23 production lines. The company's net sales are up almost 350% and profits are up more than 100% since last year. The quarterly profits rose 53%. They are expecting an even higher increase in sales volume. The company has beaten the expected EPS in last four quarters by more than 40% every time. Cramer said it already trades at 16-times 2010 earnings. He thinks that the forecasts may end up being too low. Their expected growth for next year is 83%. The current PE is 46.19 and forward PE is 18.47. Earnings are expected to grow 56.90% year on year and next year estimate for EPS is 6.75. Goldman Sachs and other security analysts value FSLR at an average price of $234. IT IS GOING UP !!!!!!!